Following its recent acquisition of Budapest Airport, the Hungarian government has unveiled ambitious plans for multi-billion dollar investments aimed at significantly expanding the airport's capacity.
The government's vision for the airport's expansion was outlined by Economy Minister Marton Nagy, who emphasised the need for increased capacity to accommodate the growing number of passengers. The centerpiece of the plan is the construction of a third terminal, which Vinci executives estimate could be completed by 2032. This ambitious project aims to significantly boost the airport's capacity, enabling it to handle a projected 25 million passengers by 2040, a substantial increase from the estimated 17 million passengers expected this year.
Beyond the terminal expansion, the government is also focused on improving accessibility to the airport. Minister Nagy revealed that both rail and road infrastructure upgrades are under consideration, with each project estimated to cost around €1 billion. These enhancements are crucial to ensuring that the airport can efficiently handle the anticipated influx of passengers and maintain its position as a key transportation hub for the region.
The government's acquisition of the airport, championed by Prime Minister Viktor Orban, aligns with a broader strategy to increase local ownership of strategic assets. While the government will be the driving force behind the expansion, Vinci SA, the French construction giant and airport operator, will continue to manage the airport's operations. Vinci currently holds a 20% stake in the airport and played a crucial role in its joint acquisition with the Hungarian government for €3.1 billion, in addition to assuming a net debt of €1.2 billion.
To further finance the expansion, the government is in talks with the United Arab Emirates and the Qatar Investment Authority regarding the potential sale of a minority stake of less than 10% in the airport. This strategic move could provide additional funding for the ambitious project and strengthen international partnerships in the aviation sector.
However, the ambitious expansion plans have not been without controversy. Critics have raised concerns about the government's growing influence over strategic assets and the potential impact of increased air traffic on the environment. The government, however, maintains that the expansion is essential to meet the demands of a growing economy and that environmental considerations will be taken into account throughout the development process.
